I.

Executive Summary

As the leading cola brand globally, the Coca-Cola Company has retained its
dominant market share. A newcomer competitor however paved the way to overtake
the position and outsell Coca-Cola. The Pepsi company has undeniably made a genius
move by using the withdrawal of the leading company as a chance to move forward.
It even claimed itself as the “young people’s drink” and poked fun at Coca-Cola
being the “old generation”. By doing so, it truly made its way to lead the market.
Before Pepsi has entirely overcame the people’s tastes, Coca-Cola was the traditional
market leader in the cola industry and has kept its legacy. Of course, it has to make a
move. Among all the strategy solutions made by the Coca-Cola Company, the 1985
case was considerably the strongest. They launched the “new” coke back then. It is
different from their traditional product and has better taste and better value.
Essentially, this is the only way left for them to survive its competitive battle against
Pepsi. Making something new was their deliberate marketing ploy in order to win the
market’s taste and completely erasing the low-quality version of Coke. However, this
move didn’t entirely recover their flagship.

According to some analysts, Coca-Cola Company failed to understand the

emotional attachment of the market to the “old” Coke. Reportedly, people were very
much attached to the old product to the extent that when they taste the new product,
they didn’t feel the nostalgia the original “coke” has been giving them throughout the
years. People are motivated by more than just a taste. The New Coke was never their
choice, too. During this time, consumers are captured by familiarity rather than
novelty. But Coca-Cola cannot be blamed for not doing enough research beforehand.
The newly relaunched product was tested and actually proved better than Pepsi.
However, nothing was sufficient. Then again, it all worked out in the end. Coca-Cola
Classic was introduced and the demand of the consumers were considered. The
company’s sales improved over time and people began to patronize the product
leading to its replacement of the flagship.
 II. Statement of the Problem

This paper sought to answer these following questions:

1. What was the root of the “New Coke” failure?

2. Why don’t the issues of come up before launching the New Coke?
3. How does the marketing strategy of Pepsi overtake Coca-Cola’s place?
4. What part of Coca-Cola’s marketing strategy failed?
5. Despite the crisis, how does the Coca-Cola Company regain its flagship?

III. Causes of the Problem

REFERENCES:

https://www.snopes.com/fact-check/new-coke-fiasco/

www.greatideasforteachingmarketing.com

www.icmrindia.org

www.coca-colacompany.com

www.thehenryford.org